Today (17/7/24), the introduction of a new Renters’ Rights Bill was confirmed in the King’s Speech. The King briefly mentioned that the government plans to enhance “greater rights and protections to people renting their homes, including ending ‘no fault’ evictions and reforming grounds for possession.” This initiative aims to address the insecurity and injustice faced by many renters by fundamentally reforming the private rented sector and improving the quality of housing.

Key Points from 10 Downing Street

Following the King’s Speech, 10 Downing Street provided more details:

• Ending ‘No Fault’ Evictions: The government plans to abolish Section 21 ‘no fault’ evictions, which currently allow landlords to evict tenants without providing a reason.
• Strengthening Grounds for Possession: The Bill will ensure that responsible landlords can still regain possession of their property when there is a legitimate reason.
• Greater Security and Rights for Renters: Renters will be given greater stability, allowing them to stay in their homes longer and build lives in their communities without the constant threat of eviction.
• Crackdown on Unfair Practices: Measures will be taken against landlords who exploit tenants, such as imposing unfair rent increases or pitting renters against each other in bidding wars.
• Improving Housing Quality: The Bill aims to enhance the overall quality of housing in the private rented sector.

Additional Legislation

The King’s Speech also mentioned other housing-related legislation:

• Planning and Infrastructure Bill: This Bill aims to accelerate construction projects across Britain.
• English Devolution Bill: It will grant new powers to metro mayors and combined authorities.
• Leasehold and Commonhold Reform: The government plans to publish draft legislation to reform these areas.

Parliamentary Year Overview

In total, 40 Bills were announced for the coming Parliamentary year.

Prime Minister’s Statement

Prime Minister Sir Keir Starmer emphasized the need for patient and determined work to address the challenges facing the UK. He warned against the allure of populism, stating that rebuilding the country requires serious solutions and that the era of “politics as performance” is over.

Starmer added, “The challenges we face require determined, patient work and serious solutions, rather than the temptation of the easy answer. The snake oil charm of populism may sound seductive, but it drives us into the dead end of further division and greater disappointment. This King’s Speech sets out a clear destination for our country.”

In the notes to accompany the Kings Speech, it states the following about rental:

• Renters’ Rights Bill
  “Legislation will be introduced to give greater rights and protections to people renting their homes, including ending no fault evictions and reforming grounds for
  possession”
  ● More than 11 million people in England live day in, day out with the knowledge that they could be uprooted from their home with little notice and minimal justification, and a significant minority of them are forced to live in substandard properties for fear that a complaint would lead to an instant retaliatory eviction.
  The Government is determined to address the insecurity and injustice that far too many renters experience by fundamentally reforming the private rented sector and improving the quality of housing in it.
  ● We value the contribution made by responsible landlords who provide quality homes to their tenants and believe they must enjoy robust grounds for possession where there is good reason to take their property back. However, the Government is determined to level decisively the playing field between landlord and tenant by providing renters with greater security, rights and protections and cracking down on the minority of unscrupulous landlords who exploit, mistreat or discriminate against tenants with bad practices such as unfair rent increases intended to force tenants out, and pitting renters against each other in bidding
  wars.
  ● The Renters’ Rights Bill delivers our manifesto commitment to transform the experience of private renting, including by ending Section 21 ‘no fault’ evictions – we will take action where the previous Government has failed. The Bill will giveing renters much greater security and stability so they can stay in their homes for longer, build lives in their communities, and avoid the risk of homelessness.
  What does the Bill do?
  ● The private rented sector must work for all those who depend upon it for a secure home. A functioning sector can provide flexibility for those who want it, and a secure stepping stone for aspiring homeowners.
  ● Too many renters are being exploited by a minority of unscrupulous landlords, unable to challenge bad practices because they could be evicted at any moment.
  This is bad for economic growth and productivity, poor for health, and a drain on aspiration.
  ● The Renters’ Rights Bill will overhaul the private rented sector, with this Government determined to take action where the previous Government failed, transforming rights for the 11 million private tenants in England by:
  o abolishing Section 21 ‘no fault evictions’, removing the threat of arbitrary evictions and increasing tenant security and stability. New clear and expanded possession grounds will be introduced so landlords can
  reclaim their properties when they need to.
  o strengthening tenants’ rights and protections, for example we will empower tenants to challenge rent increases designed to force them out by the backdoor and introduce new laws to end the practice of rental
  bidding wars by landlords and letting agents.
  o giving tenants the right to request a pet, which landlords must consider and cannot unreasonably refuse. Landlords will be able to request insurance to cover potential damage from pets if needed.
  o applying a Decent Homes Standard to the private rented sector to ensure homes are safe, secure and hazard free – tackling the blight of poor-quality homes.
  o applying ‘Awaab’s Law’ to the sector, setting clear legal expectations about the timeframes within which landlords in the private rented sector must make homes safe where they contain serious hazards.
  o creating a digital private rented sector database to bring together key information for landlords, tenants, and councils. Tenants will be able to access information to inform choices when entering new tenancies.
  Landlords will be able to quickly understand their obligations and demonstrate compliance, providing certainty for tenants and landlords alike. Councils will be able to use the database to target enforcement
  where it is needed most.
  o supporting quicker, cheaper resolution when there are disputes – preventing them escalating to costly court proceedings – with a new ombudsman service for the private rented sector that will provide fair,
  impartial and binding resolution, to both landlords and tenants and reducing the need to go to court.
  o making it illegal for landlords to discriminate against tenants in receipt of benefits or with children when choosing to let their property – so no family is discriminated against and denied a home when
  they need it.
  o strengthening local councils’ enforcement powers. New investigatory powers will make it easier for councils to identify and fine unscrupulous landlords and drive bad actors out of the sector.
  Territorial extent and application
  ● The majority of the Bill will extend to England and Wales and apply to England.
  Key facts
  ● This Bill will reform the private rented sector, strengthening the protections for 11 million private tenants. This includes the 1.4 million households with dependent children and 444,000 households with over-65s privately renting.
  ● Government data released in 2024 found that no fault evictions resulted in a record 25,910 households being threatened with homelessness in 2023. In addition, 2,682 households in England were removed from their homes by bailiffs because of no fault evictions between January and March – up 19 per cent in a year and the highest number in six years.
  ● The last two years has seen unprecedented levels of growth in rental prices. Whilst the annual growth rate in rents have usually been around 2 per cent, in March 2024 yearly increase in the average rent of the stock of tenancies reached 9 per cent.
  ● In 2021, private rented sector tenants spent 38 per cent of their income on rent (excl. housing support), whilst homeowners spent only 21 per cent on mortgage costs and social renters 27 per cent on rent.
  ● 21 per cent of private rented sector homes (approximately one million properties) are non-decent and 12 per cent (approximately 580,000 properties) contain a category one hazard such as severe damp or mould.